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Discuss about the Strategic Management of is JB Hi-Fi Organization.

The act of strategic management is concerned with the formulation as well as implementation of the important initiatives of the company. The act of strategic management is an important job role of the top management of a firm (Rothaermel, 2015). The strategic management is done on the basis of considering the key resources of the company and understanding the external as well as internal environment. The act of strategic management for the organization concerns with the direction of the enterprise as well as takes into consideration the organizational objectives (Rothaermel, 2015). A basic strategy is defined as analytical process which is formalized process that underlines the long-term goals of the concerned company (Hill, Jones & Schilling, 2014).The modern-day organizations need to implement excellent strategies so that they can survive well in the market.

This essay would focus on the strategic management of the selected organization. The organization selected for the purpose of study is JB Hi-Fi, which is one of the largest Australian retailers of the consumer goods. The theoretical concepts pertaining to strategic management would be discussed. The influence of these theoretical criteriawould be applied for the selected organization. These evaluations would be observed in detail and critical reflective analysis would be done which would improve the strategic management of the firm.

The organization selected for the purpose of study is JB Hi-Fi, which has been in the news in the last six months. This is because of the fact that the company has taken sufficient strategic management steps in order to be ahead in the market prior to the arrival of Amazon. Amazon is making an entry to the markets and hence JB has decided to prepare itself well so that it can give tough competition (Peppard & Ward 2016). The company is aiming to replicate the “in-store” experience of the store which would enhance the loyalty of the customers. The company is also planning to launch a store on the marketplace of Amazon in order to gain higher visibility and thus high profits.

JB Hi-Fi is considered as the most successful business operating in Australia and it was established on 1974(, 2017). The main headquarters of the brand is located at Melbourne, Australia and it is located in around 194 locations (, 2017). It has engaged in acquiring Clive Anthony’s chain, Hill and Stewart chain, The Good Guys and others (, 2017).The main products of the brand includes the consumer goods, which includes the DVD, CDS, hardware, home appliances and others. The primary competitors of the brand include David Jones, Harvey Norman, Myer and others (, 2017). The operating revenues of the brand are A$ 221 million in the year 2016 and it has an annual profit of A$152 million (, 2017). The company engages in a wide number of acquisitions for the strategic gain of the firm.

There are important concepts pertaining to the strategic management in an organizational scenario. The strategic management is concerned with the analysis of the external as well as internal environment. It is also concerned with the evaluation and the implementation of the important directions for the company (Rothaermel, 2015). The strategic objectives are being formed by taking into account the strategic vision of the company.

The Schendel and Hofer model is concerned with a unique strategy management model which takes into account the planning as well as controlling function of the organizations (Segato, 2016). The model comprises of several steps, which are outlined below-

  • Goal formulation- As opined by Chrisman (2015), the act of strategy formulation is concerned with the identification of the broad objectives of the firm and how they are related with the organizational mission (Rothaermel, 2015). The determination of goals and its relation with the eternal marketing environment would help in the formulation of suitable marketing plan.
  • Environmental analysis- The external environmental analysis is concerned with the identification of the key elements that has the probability of affecting the performance of the organization (Epstein & Buhovac, 2014). This analysis is helpful in understanding the various threats or opportunities present in the external market.
  • Formulation of strategy is responsible for achieving the business objectives of the firm. The formulation of appropriate strategy is concerned with understanding of the objectives of the firm (Rothaermel, 2015). The first step is concerned with the setting up of organizational objectives. The strategies should be formulated by taking into account the divisional plans (Eccles, Ioannou & Serafeim, 2014). The performance analysis is also important for understanding the various parameters of the strategy and subsequent implications on the organization.
  • Strategy evaluation - It is important to evaluate the implemented strategy so that it fulfills the strategic objectives of the form (Stanway, Hart & Taylor, 2013). The different parameters of this step include the through detection of the strategy so that it meets the organizational mission (Epstein & Buhovac, 2014). It is important to fix a benchmark of the performance and measure the performance accordingly.
  • Strategy implementation- The implementation of the strategy is important as per the original laid down protocols. It is a process which turns the strategies into actual course of action (Wheelen & Hunger, 2017). It can be seen that 86% of the business managers spend less time in this aspect, which makes them to fail in this step.
  • Strategic control- This step is concerned with the actual formation as well as execution of the various strategic plans (Epstein & Buhovac, 2014). This form of control is considered to be a specialized form of management control in which there is full focus on the strategic initiatives undertaken by the firm.

The second most important concept in strategic management is considered with the idea of “Strategic fit”. The strategic fit is concerned with the degree to which the organization would match with the external opportunities of the firm (Prajogo, 2016). This kind of matching does take place through the implementation of strategy and the rightutilization of the strategies. The strategic fit can be used as the current strategic positioning of the company so that they get sufficient opportunities (Epstein & Buhovac, 2014). This strategic fit is usually based on the present strategic position of the firm and the resource based view is also utilized in this process. There is the development of a unique proposition of capabilities and resources of a firm that can be combined to create competitive advantage. The aspect of strategic fit is important since it would help in efficient resource allocation by the firm.

The third most important concept in strategic management deals with the idea of sustainable competitive advantage (Prajogo, 2016). In the modern business framework, it has become imperative to give innovative and value-added products to the customers so that they can continue to purchase products or avail the services of the same company(Prajogo, 2016). This is because of the fact that there is a large number of competitors in the market (Liu, 2013). The firms would be able to gain competitive advantage if they are able to create value added strategies, which has not been implemented by any other competitor(Prajogo, 2016). The strategies should be valuable, rare and they should be unique enough to penetrate fast among the masses. The sustainable competitive advantages should be features which the competitors would not be able to replicate easily. As opined by Huang, Dyerson and Harindranath(2015), the competitive strategies are some of the most important strategic options that needs to be adopted by companies so that they can maintain the market good will. It is most important to formulate policies that put a particular company ahead of the competitors (Nadarajah & Latifah Syed Abdul Kadir, 2014). This would increase the brand loyalty as well as customers would be glued to this particular brand only. There could be variety of attributes that can be used for the purpose of creating competitive edge (Nadarajah & Latifah Syed Abdul Kadir, 2014). The companies can invest in a good location, get good distribution channels, create good vendor relations, create unique merchandising, give good customer service and others (Nadarajah & Latifah Syed Abdul Kadir, 2014). These would definitely help the company to be a favorable company among the target audience. The sustainable competitive advantage can be formed with the help of efficient human resources. The competitive advantage is determined by the level of performance of human performance (Cummings & Worley, 2014). The firm’s performance is also measured by competitive advantage. A firm can achieve market leadership only with the help of this tool.

JB Hi-Fi has successfully applied the above three strategic management concepts in their respective organizations. The company aims to provide integrated products as well as services in their business (Cummings & Worley, 2014). The company has always strived for business growth and this would not have been possible without the help of proper strategic management. Though there is overall good implementation of the strategic management policies of the organization, but there are certain loopholes in their management process.

The company applies the strategic management concepts in their day to day functioning. The senior management leaders are in the constant process of revising their strategy so that they can meet with the changing market dynamics (Cummings & Worley, 2014). According to the first step of the Schendel and Hofer model, the company is particular about formulating goals and they are always particular about what they expect from their employees. The company always tries to link their corporate strategy with the overall organizational mission (Cummings & Worley, 2014). They keep in mind that the company goals need to be revised from time to time so that the various changes can be accommodated. The company engages in extensive support from all levels of organization. It engages in regular feedback from the employees, which makes them to improve the strategic directions (Colgate, 2016). The company believes in the fact that the company decisions would be effective only if it is taken after consulting with the employees.

The company decisions are being undertaken by estimating the external environmental analysis. The external competitive analysis is being done and the level of competition is assessed by the company. The various threats of the external market are analyzed and suitable strategies are being undertaken (Shafiee, Lotfi& Saleh, 2014). The organization is involved in the formulation of suitable strategies based on the internal as well as external environment. A lot of strategic control measures are being adopted by the company. A balanced scorecard approach has been adopted by the company where the performance of the organization is measured (Shafiee , Lotfi & Saleh, 2014). It also believes in evaluating the internal performances of the employees so that they can give their maximum output to the organization.

One of the primary drawbacks of the strategic management of the company is that the it spends less time on strategic implementation(, 2017). The implementation team of the firm is not strong enough and hence there are loopholes when it comes to implementing some strategies. Another strategic drawback of the firm was the poor gender diversity (, 2017). A small 39 percent of women are employed with JB Hi-Fi and a meagre 4% of them are employed in senior management level (, 2017). This has led to certain level of demotivation among the women workforce, which is not good for organizational growth.  The organization takes no policies for encouraging more recruitment of the women employees.

It is recommended that the company adopts regular assessment as well as reporting towards the various gender diversity objectives. It should try to bridge the existing disparity by bringing in strategic changes. There should be flexible work practices which would enable the women employees to work for a long time in senior management positions. It is also important that a proper strategy implementation team is formulated. This would be done by selecting senior members who have displayed good performance in the organization. This team should make sure that the formulated strategies are actually implemented in the organization. It is also important to focus more on the issue of gender diversity and make more women friendly policies. The world is becoming more progressive and hence it is important to implement gender diversity policies which would enhance the productivity of the firm (Conrad et al., 2018). The firm should strive to provide equal package to the employees especially females so that they can be motivated to work for a long time. There should also be the creation of a team that celebrates the facets of diversity and prioritizes the weaker gender. There should be equal attention to the success of the female professionals so that the deserving candidates get greater accomplishment in their workplace. The women employees should be encouraged so that they can continue with their job even after having their families. This would improve the gender diversity of the organization.

It is also recommended that the company should engage in understanding the strategic fit of the firm. The external opportunities should be understood well so that the strategic modifications can be done accordingly. The Australian market is full of new business ventures and several companies are opening their stores there. Many multinational companies are opening their flagship stores. So, it is important for the company to assess the strategic position of the firm and promote themselves accordingly. The strengths of the competitors must be assessed so that the company is able to make suitable competitive policies. The company should stop assuming the universally applicable policies and instead try to focus on the customized policies that are suitable for the organization. There should be right combination of integration, development, production, administration and others for achieving business success. The business strategy should be molded in a manner that provides the maximum returns. It is also important to place importance on the supply chains of the firms. There would be uncertainty however, the company must be aware of the demands at each possible stage as well as select suitable level of responsiveness which would be suitable for each level. It is also important to understand the strategic fit between human resources and the organization. The human resources of JB Hi-Fi should be aligned with the strategic goals of the organization as this would increase the organizational capability of performing better.


The strategic management is concerned with the fulfillment of the organizational mission. It is involved with the analysis of the competitive environment and formulation of appropriate strategy. The organizations should know how to utilize their strengths and convert their weakness to strengths. The company should also know how to tap the opportunities that are presented to them. This essay discussed some of the critical concepts of strategic management and how they are applicable to a real organization. The three most important concepts of strategic management were discussed such as sustainable competitive advantage,strategic fit and the Schendel and Hofer model. The application of the strategic management concepts has been done in JB Hi-Fi and how it affects the organizational decisions is also being elaborated. The concluding part of the essay discussed about the probable strategic recommendations that should be taken by the company in order to be more sustainable organization. This would also give more revenue generation to the company.


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